Question
Data: State of Economy Probability of State of Economy Rate of Return if State occurs (Stock A) Rate of return if state occurs (Stock B)
Data:
| State of Economy | Probability of State of Economy | Rate of Return if State occurs (Stock A) | Rate of return if state occurs (Stock B) |
| Recession | 0.25 | 6% | -20% |
| Normal | 0.55 | 7% | 13% |
| Boom | 0.20 | 11% | 33% |
Show the calculations for the following using the data above:
- Expected Return
- Variance
- Standard Deviation
- Covariance
- Correlation
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Entrepreneurial Finance
Authors: Simon Hulme, Chris Drew
1st Edition
1352009811, 978-1352009811
